Upson to raise P4.9 billion from IPO

Iris Gonzales - The Philippine Star

MANILA, Philippines — Upson International Corp. (UIC), a retailer of personal computers and information technology products, will embark on an initial public offering.

It has filed with the Securities and Exchange Commission (SEC) its registration statement for a plan to offer up to 888.2 million common shares, comprising up to 789.47 million primary shares and up to 98.7 million secondary shares to raise around P4.88 billion.

Proceeds will be used for store network expansion and general corporate purposes. Subject to regulatory approvals, the proposed offer period and target listing date in the main board of the PSE is September this year.

UIC offers retail products through different outlet brands namely Octagon Computer Superstore, Micro Valley, and Gadget King.

UIC chief exective officer and president Arlene Sy said there are technological developments in computers and other IT products matched with growing market segments like educational needs and computer and IT-related jobs in all 17 regions.

“These are compelling opportunities that fuel the need for an aggressive expansion of our retail network nationwide. We plan to open 250 branches over the next three to five years to add to our existing 183 branches as of 2021,” Sy said.

Despite the pandemic, UIC’s revenues grew by five percent to P8.6 billion last year from P8.2 billion in 2020, bringing net income to P403.6 million last year from P206.7 million in 2020 or up by 95 percent.

UIC tapped First Metro Investment Corp. as the sole issue manager, bookrunner, and lead underwriter for this IPO.

FMIC president Jose Patricio Dumlao said the company expects strong interest in this IPO given UIC’s steady and consistent growth in the consumer electronics market.

“UIC, which has a long-standing presence in the retail industry, has been consistently growing and performing so well in the Philippine market,” he said.

As restrictions ease, Dumlao said UIC has been taking strategic initiatives to adapt to the constant change in behavior among its consumers and to ensure that they’re able to cater to more customers by providing a complete, quality, and an up-to-date suite of IT products both through their physical stores and online platforms.

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